Some businesses choose to offer in-house financing solutions for their customers. While this sounds good, it can be expensive and cumbersome, and it doesn’t improve the customer’s buying experience in any meaningful way. It may, in fact, detract from it.
Outsourced financing allows dealers to focus on what they do best—making the sale. There are some responsibilities you just can’t outsource, like staff management and inventory procurement. These are complex enough on their own, and adding a financing department to your dealership would only add a host of other expenses, from staff to regulatory compliance. Here, we explain how outsourced financing works so that you can make the best decision about how to proceed for your dealership and, in the end, your customers.
Financing – What Is Involved?
In a perfect world, all of your customers would be walking in your doors with suitcases full of cash, ready to buy their dream boat or RV. You’d take the briefcase, count the bills, and hand over the keys. Unfortunately, customers will rarely, if ever, have that much disposable cash to drop on an expensive vehicle. Realistically, your customers are going to need to finance their purchase.
To accomplish this entirely in house, you will need lending relationships and an infrastructure built into your business. That will involve staff dedicated to loan processing, compliance with financial services regulations, and more. Why not leave it to dedicated professionals who specialize in financing the types of vehicles you already sell?
The Benefits of Outsourced Financing
When you outsource your financing solutions to professionals like those at Finance Solution, you will provide a better quality of service to your customers.
As far as the lending process is concerned, there are a couple of substantial benefits:
When a customer walks in the door, they may have dreamed of adventure, such as riding around the country in a luxury RV. Or they could have been thinking for years about buying a boat for their annual family trip to the lake.
No matter where they are on this spectrum, there is one common denominator. They want to get into their new boat, RV, or camper with as little hassle as possible. A big point of dissatisfaction during the buying process comes when their loan can’t be closed quickly. Expert outsourced lending providers like Finance Solution can eliminate this problem.
With in-house lending, you might not have the versatile suite of offerings a professional outsourced provider can offer. Lending Solution, for instance, offers lending solutions that meet customers where they are, helping them achieve their dreams of owning a recreational vehicle or boat.
Benefits for Dealers
Thanks to increased buyer satisfaction and boosted referral business, these benefits for customers are, in effect, also benefits for dealers. And dealers can see a number of direct benefits as well.
With flexible financing options available, the chances that customers will be approved for loans is far higher. For dealers, the impact is obvious. More approved loans equal more units driving off the lot. What’s more, an outsourced lender can accomplish this without the dealer needing to hire more internal staff, as they would with an in-house financing strategy. Furthermore, you only pay your lending service when a loan closes. In other words, there’s no staff to pay during the off-season.
We’ve only covered some of the ways an outsourced financing strategy can improve your business operations and boost your bottom line. The right lender can even improve customer satisfaction, which leads to an increase in repeat customers and potential referrals.
Finance Solution isn’t a typical outsourced F&I provider. We specialize in recreational vehicles, boats, and more. We know the customer and are ready to jump right in. Contact us to learn more.